Anaheim is after NBA Kings: OKs $75 million

The Anaheim City Council chambers erupted in applause as the council approved the issuance of $75 million in lease-revenue bonds, a move that lays the groundwork for the Sacramento Kings basketball team to move to Anaheim's Honda Center next year.JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER

ANAHEIM – The City Council on Tuesday approved the issuance of $75 million in bonds, a move that lays the groundwork for the Sacramento Kings basketball team to move to Anaheim's Honda Center next season.

In a vote that Mayor Tom Tait called "historic," the council voted unanimously for the bonds: $25 million for upgrades to the city-owned Honda Center, and $50 million in working capital, money that could help pay for the Kings' relocation fees.

Tait said it was a "giant step toward bringing an NBA team to the Honda Center."

"I am thrilled. A better word – I am stoked," Tait said.

Tuesday's agenda made no specific mention of the Kings – only an "NBA team." But it has become increasingly clear in recent weeks that the Kings are on the verge of filing for relocation to Anaheim.

Kings owners and Anaheim Arena Management, the Henry Samueli-owned company that runs the Honda Center, are in private negotiations. Attorneys for the Kings' owners have filed for trademarks on several names, including the Anaheim Royals.

"This is going to be a great economic engine for all of us," Councilman Harry Sidhu said. "I am fully confident."

None of the bond money comes from the city's general fund or from taxpayers. The bonds are to be purchased entirely by private investment firms – headed by Samueli – and paid back during a 10-year-period. Repayment of the bonds, the principal and interest, will come from revenues at the Honda Center – revenues expected to be covered by the Kings playing 41 home games per season there.

The bond funding would become effective within 180 days and the entire deal is contingent upon the Kings being granted relocation by the NBA Board of Governors, made up of team owners. The Kings would need a simple majority. The Kings have until April 18 to file for relocation with the NBA.

The Honda Center, which holds 18,336 for basketball, was built in 1993 for two professional sports teams. Until now, the only prominent tenant has been the Anaheim Ducks hockey team.

Honda Center officials on Tuesday set up a priority waiting list for ticket information at waitlist@hondacenter.com. Interested fans are asked to email their names and phone numbers.

Under the deal approved Tuesday, the contract with Anaheim Arena Management also was extended until 2033. And the contract spells out that an NBA team would use the privately owned American Sports Center, near the I-5 freeway and Anaheim Boulevard, as a temporary practice facility.

"We are grateful to the entire leadership group of the city of Anaheim, who tonight fully endorsed our shared efforts to bring an NBA franchise to the region," Anaheim Arena Management chairman Michael Schulman said in a prepared statement. "This vote is an important first step as we continue working toward hosting an NBA franchise at Honda Center."

Joe Maloof, co-owner of the Kings, told the Register on Monday that those loans would be paid in full.

When asked about Sacramento's concerns, Mayor Tait said, "I am mayor of Anaheim. My concern is the interest of Anaheim residents. ... Most teams come from another city – the Lakers did, the Clippers did. We're just very excited Anaheim is closer to getting a team."

The Anaheim City Council chambers erupted in applause as the council approved the issuance of $75 million in lease-revenue bonds, a move that lays the groundwork for the Sacramento Kings basketball team to move to Anaheim's Honda Center next year. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER
Mayor Tom Tait assures the community that any team that moves to the Honda Center will have Anaheim in the name. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER
Joe Aihara, a teacher and varsity basketball coach at Anaheim's Western High School, says that his students and players are very excited about the prospect of getting an NBA team in their home town. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER
Charles Ahlers, president of the Anaheim/Orange County Visitor and Convention Bureau, says that the local tourism community is excited about the prospect of the Kings basketball franchise moving to Anaheim. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER
Local businessman David Diaz speaks to the character of the Maloof family after one speaker suggested that the Kings basketball team owners were anything but honorable businessmen. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER
Todd Ament, president/CEO of the Anaheim Chamber of Commerce, says that his members are eager to begin serving the needs of an NBA team in Anaheim. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER
Anaheim Mayor Mayor Tom Tait, center, and the city council listen to public comments before voting to approve the issuance of $75 million in lease-revenue bonds, a move that lays the groundwork for the Sacramento Kings basketball team to move to Anaheim's Honda Center next year. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER
Members of the community packed the Anaheim City Council chambers as the council deliberated the issuance of $75 million in lease-revenue bonds, a move that lays the groundwork for the Sacramento Kings basketball team to move to Anaheim's Honda Center next year. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER
The Honda Center as seen from the air March 29, 2007. JOSHUA SUDOCK, THE ORANGE COUNTY REGISTER
The Honda Center in Anaheim, Calif. is home to the NHL's Anaheim Ducks. KEVIN SULLIVAN, THE ORANGE COUNTY REGISTER

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